Wednesday, 04 July 2018 14:55

Talking up NZ/EU free trade

Written by  Peter Burke
EU Trade Commissioner Cecilia Malmstrom and NZ Trade Minister David Parker address the media following the beginning of negotiations on a free trade deal between NZ and the EU in Wellington earlier this month. Photo: Alphapix / John Cowpland EU Trade Commissioner Cecilia Malmstrom and NZ Trade Minister David Parker address the media following the beginning of negotiations on a free trade deal between NZ and the EU in Wellington earlier this month. Photo: Alphapix / John Cowpland

A 50% increase in trade, higher wages for New Zealanders and cuts in tariffs to benefit our producers. 

These and other options were floated when the European Union’s Trade Commissioner, Cecilia Malmstrom, and NZ Trade Minister David Parker met in Wellington last week to formally start negotiations for a free trade agreement (FTA).

They and their respective officials met briefly at Parliament to start the talks, a long time in the making. They come as NZ’s traditional ally in the EU, Britain, works on its (messy) exit from the EU.

Both Malmstrom and Parker expressed delight that the talks are underway and waxed lyrical about what an FTA could do for both parties. Their chemistry seemed good and Malmstrom appeared relaxed and genuinely friendly towards NZ; and the officials negotiating the deal know each other well. 

No surprises are expected in these talks, but there will be challenges. Two-way trade between the EU and NZ is worth $16 billion and the talk was of a natural partnership and historic values shared by both jurisdictions. 

Parker says a successful FTA will raise the prosperity of both NZ and EU, with benefits for all.

“We are interested in trade that benefits all and we are determined to push the benefits of those down to small businesses by reducing their barriers to trade. We also want to encourage more women-owned businesses into trade and encourage our burgeoning indigenous economy to grow,” he says.

Malmstrom described the talks as opening a new chapter in economic possibilities for companies and giving choices to consumers, as well also deepening the strategic ties.

She says NZ is a friend and an ally and that it, along with the EU, stood for common values as expressed in sustainable trade and done in compliance with international trade rules.

“We already do trade with each other, but we will try and facilitate that even further and build this relationship; so as to create more jobs and widen consumer choice. 

“We have the opportunities to set ambitious rules to facilitate trade. Trade is about tariffs but also [requires] dealing with obstacles, red-tape, bureaucracy, difficult procedures to get certificates and licences.” 

Malmstrom says she’s looking forward to the discussions and thinks if the negotiations are successful it will produce a blueprint for FTAs that will inspire other nations to do the same. 

Parker agrees, saying that a good NZ/EU FTA would not only benefit both jurisdictions but also make the world a better place.

The first detailed round of negotiations is due to take place in Brussels next month, followed by a further round in Wellington later in the year.

More like this

Changing global trade ties

OPINION: I recently returned from a market visit overseas, including the United Kingdom and Europe. These are critical, historically important and increasingly high value markets for our red meat exports.

Editorial: Winston's words of wisdom

OPINION: Foreign policy is a real strength of Winston Peter and this is recognised by Ministry for Foreign Affairs and Trade (MFAT) officials who, so the story goes, wanted him in his present role because of his experience in that field.

Featured

LIC Space folds for good

Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Are they serious?

OPINION: The Greens aren’t serious people when it comes to the economy, so let’s not spend too much on their…

A hurry up!

OPINION: PM Chris Luxon is getting pinged lately for rolling out the old 'we're still a new government' line when…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter